Ola Electric Board Clears ₹1,000 Crore Rights Issue: Report

Ola Electric’s board of directors has approved a rights issue of partly paid-up equity shares to raise up to ₹1,000 crore, marking another step in the electric two-wheeler maker’s previously approved ₹1,500 crore fundraising plan. The proposed issue will comprise equity shares with a face value of ₹10 each and will be offered to eligible equity shareholders, Inc42 reported on Tuesday. 

Ola Electric has not yet disclosed the price, rights entitlement ratio, record date or issue timeline. These details are expected to be finalised by the board at a later stage.

The company has also not specified how it intends to deploy the capital raised through the rights issue.

Rights Issue Forms Part Of ₹1,500 Crore Fundraise

The latest decision comes days after Ola Electric received board approval to raise fresh capital of up to ₹1,500 crore. On September 23, the company opted for a rights issue as the fundraising route, saying it would “enable participation by all eligible shareholders including retail, institutional and promoter group, subject to applicable law”.

The company is yet to clarify whether the remaining ₹500 crore from the broader fundraising plan will be raised through another route.

The latest proposal is also Ola Electric’s second major capital-raising exercise in recent months. In June, the company raised ₹780.24 crore through a qualified institutional placement (QIP), as part of an earlier ₹1,500 crore fundraising approval cleared by the board in October 2025 and subsequently approved by shareholders in November.

At the time, Ola Electric had outlined plans to use ₹225 crore of the proceeds to repay or prepay certain borrowings, while ₹335 crore was earmarked for organic growth initiatives.

Ola Electric Steps Up Battery Investment

The latest fundraise comes as Ola Electric increases investment across its electric vehicle, battery cell manufacturing and battery energy storage system businesses.

The company has been placing greater emphasis on its battery-related operations and energy storage activities as it looks to build additional business verticals beyond its core electric two-wheeler operations. The extent to which the new capital will be allocated across these businesses, however, has not yet been disclosed.

In the electric two-wheeler segment, Ola Electric has recently expanded its product range with the S1Z series, positioned in the mass-market category and launched at a starting price of ₹79,999.

E2W Business Faces Pressure

Ola Electric’s share of India's electric two-wheeler market increased to 7.6% in August from 6.8% in July. However, its registrations declined 7.7% month-on-month to 13,132 units during the month.

The company's financial performance also remains a key consideration as it seeks additional capital. Ola Electric's consolidated net loss narrowed 22% year-on-year to ₹336 crore in Q1 FY27, compared with ₹428 crore in the corresponding period last year.

Operating revenue, however, fell 45% year-on-year to ₹455 crore from ₹828 crore. On a sequential basis, revenue increased from ₹265 crore in the preceding quarter, while the net loss narrowed from ₹500 crore.

With the rights issue now approved, the next key steps will be the finalisation of the issue terms and its execution. The eventual deployment of the proceeds will also provide greater clarity on how Ola Electric intends to balance investment in its core electric two-wheeler business with its growing focus on battery manufacturing and energy storage.